Business · Vietnam Bureau
Vietnam dong weakens against US dollar as reference rate slides
The State Bank of Vietnam's reference exchange rate declined by 2 VND on October 28, continuing a volatile trend in the currency market. The adjustment came after a 6 VND gain the previous day, underscoring recent fluctuations in the dong's value.
LSN Vietnam ·
Vietnam's reference exchange rate moved lower on October 28, depreciating 2 VND to reflect ongoing market dynamics in the foreign currency sector. The decline followed a recovery period on October 27, when the rate had strengthened by 6 VND, demonstrating the volatility characterizing recent trading sessions.
Operating within the State Bank's established trading band of ±5%, commercial banks faced a ceiling rate of 26,913 VND per US dollar and a floor rate of 24,349 VND per dollar on the day. These parameters guide daily foreign exchange transactions across Vietnam's banking system.
The week's early trading sessions had shown relative stability, with the reference rate holding steady at the week's opening. However, subsequent days brought renewed pressure on the currency, with the October 23 decline marking the beginning of a downward trajectory that persisted through late October.
The oscillating exchange rate reflects broader regional currency pressures and domestic economic conditions affecting Vietnam's foreign exchange market. Market participants continue monitoring central bank policy and international economic developments that influence the dong's valuation against major currencies.
Photo: The State Bank of Vietnam's Ho Chi Minh City branch building, August 2019. Simon_sees via Wikimedia Commons (CC BY 2.0).